H1 2023: The major producers of Butyl Rubber market in H1 2023 were Arlanxeo (Saudi Amarco), ExxonMobil, and Japan Butyl Co. Ltd., Asia Pacific region experienced fluctuations in the Butyl Rubber prices. Although, in the first three months of 2023, Butyl Rubber prices continued to surge in the Asian market. Due to rise in demand by the downstream industries, such as tyre industry, butyl rubber prices in the Asia Pacific region rose. It was because the automobile sector experienced a market upswing that increased the purchases of butyl rubber. The surge was caused by a significant increase in the industrial output and sales of the automotive industry in the Asian markets. However, butyl rubber prices spiked in April 2023 in the Asia Pacific region. Soon, the prices fell in May and June 2023, mainly as a result of overstock and heightened market competition. The market was oversupplied as a result of excess inventories built up as a result of the growth in the production and supply of butyl rubbers. As a result, sellers were compelled to slash prices and inventory levels. This drop in butyl rubber prices in Asia was a result of the struggle to maintain a balance between supply and demand in the Asian nations. On the other hand, Butyl Rubber prices started to increase in the US from April 2023. Based on the automobile industry's robust market performance, butyl rubber prices rose in the US market till June 2023.
H1 2022: During H1 2022, the production of Butyl Rubber had reached roughly 440 thousand tonnes. However, the top players in the Butyl Rubber market in H1 2022 were ExxonMobil, Arlanxeo (Saudi Amarco), and Japan Butyl Co. Ltd. The butyl rubber market in the Asia Pacific region was found to be bearish in H1 2022. Butyl rubber prices trended downward but then rebounded in the first week of March 2022. Higher prices in the Indian domestic market gave some pessimistic sentiment to the market. Due to the European crisis, demand had improved across India as speculation in the supply chain had picked up momentum as market participants gave optimum supply. In China, the butyl rubber market initially remained weak in the first half of H1 2022 due to the high availability of materials in the domestic market due to which prices deteriorated and the dynamics of supply and demand shifted gears. This led to crippling transportation and logistics in South Asia. The prices remained sluggish in the remaining part of H1 2022 across Asia Pacific region. In contrast, the Indian market grew in the first half H1 2022 due to limited inventories and high demand from the tyre industry due to strong demand of automotives in the nation. However, butyl rubber prices fell later in the second half of H1 2022. In addition, reduced demand from the downstream tire industry has led to lower prices for butyl rubber across the nation.
H2 2022: Based on region Asia Pacific was the biggest consumer all across the globe in H2 2022 with China and India being the primary consuming countries. The rising raw material prices led to a gradual increase in butyl rubber prices in the Asia Pacific region during the first three months of H2 2022. Demand from the downstream sectors like tyre and automotive industries were not so particularly strong during July- August 2022, however, due to the high raw material prices impacted costs associated with the production of butyl rubber across the Asia Pacific region, causing to increase its market value. Port congestion and supply disruptions in few Asian countries in September 2022 led to higher butyl rubber prices in the region. However, the butyl rubber prices fell soon but again rose in December 2022 in Asia but also witnessed some sense of fluctuation. One of the main drivers of butyl rubber price volatility during H2 2022 was mismatched demand and supply of butyl rubber by the demand from the downstream industries like tire and automotive industries. Volatility in natural gas prices was the main cause of fluctuations in the butyl rubber prices across Asia Pacific region. However, in the North American market, H2 2022 began with a strong start for the butyl rubber market. Prices rose rapidly till November 2022, but fell gradually for the remaining of the year. Regional demand for butyl rubber by the end -user industries fluctuated due to uneven growth in North America during H2 2022.
The global Butyl Rubber market stood at nearly 900 thousand tonnes in 2022 and is expected to grow at a steady CAGR of 4.09% during the forecast period until 2032.
Butyl Rubber is also called isobutylene-isoprene rubber (IIR Rubber) as it is manufactured by the copolymerization of isobutylene and isoprene. It is a synthetic rubber, with valuable properties such as flexibility, chemical inertness, good shock absorption, low gas and moisture permeability, excellent weather & abrasion resistance coupled with the resistance against ozone and oxygen attack. These elastomeric and significant properties of the elastomer make it a suitable material for inner tubes and vacuum or high-pressure applications under environmental conditions. Apart from inner tubes of tires and high pressure tubes, other applications of Butyl Rubbers are gaskets, diaphragms, O-rings, Seals, Liners, wires and cables, hot melts, bottle closures, caulks, etc. Butyl Rubber is widely used in adhesives and sealants as binders, modifiers, and tackifiers.
The biggest force driving the growth of the butyl rubber market is the automotive sector. This is explained due to the heavy usage of butyl rubber in tyre manufacturing by the automobile industry and the rise in interest in tyre composition research. Furthermore, Butyl rubbers also finds its use in the pharmaceutical sector for manufacturing such as rubber products, like closure, caps, stoppers, and seals for pharmaceutical bottles, blood collection tubes, injection bottles, and other infusion containers. The growing healthcare facilities and growing health awareness among population is anticipated to propel the market expansion. Owing to these factors, the Butyl Rubber market is expected to reach 1400 thousand tonnes in 2032.
Regionally, the Asia Pacific region is dominating the Butyl Rubber market followed by Europe. This region held a market share of approximately 52% in 2022. Developing countries such as South Korea, Japan, China and India are among the leading tyre manufacturers in the world, which is the reason causing high demand for butyl rubber in these countries. Growing automotive and construction activities are anticipated to bolster the market growth in future. Moreover, China is a manufacturing hub of Consumer Goods, Electronics, and automobiles which is also likely to drive the market for Butyl Rubber over the forecast period.
Based on the end-user industry, the global Butyl Rubber market is segmented into Tyre and Inner Tube, Pharmaceutical Closures, Construction, Adhesives and Sealants, and Others. Among these, the Tyre and Inner Tube sector is dominating the Butyl Rubber market and captured more than 82% of the market in 2022. Because of its low permeability in comparison to other rubbers, Butyl Rubber is used to make tyres. For commercial trucks, bicycles, industrial and speciality tyres, regular butyl rubber is often used that offers excellent inflation pressure retention. By chemically bonding the air-retaining inner liner to the tyre body, butyl rubber can create tubeless tyres that are more durable.
Major players in the production of Global Butyl Rubber are ExxonMobil, Arlanxeo (Saudi Amarco), Japan Butyl Co. Ltd, SINOPEC Beijing Yanshan Company, Formosa Synthetic Rubber Corporation, Tolyattikauchuk (SIBUR), Shandong Chambroad Petrochemicals Co., Ltd, China Petrochemical Corporation, Nizhnekamskneftekhim, Sabic & ExxonMobil JV, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Butyl Rubber which covers production, demand and supply of Butyl Rubber market in the globe.
• To analyse and forecast the market size of Butyl Rubber
• To classify and forecast Global Butyl Rubber market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Butyl Rubber market in the globe.
To extract data for Global Butyl Rubber market, primary research surveys were conducted with Butyl Rubber manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Butyl Rubber market over the coming years.
ChemAnalyst calculated Butyl Rubber demand in the globe by analyzing the historical data and demand forecast which was carried out considering the raw materials to produce Butyl Rubber. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.